KARACHI, Jan 14: Trading on the cotton market on Monday lacked normal buying interest as spinners kept to the sidelines most of the time, awaiting some positive developments on the export front.

Stray lots, however, did change hands mostly at the lower rates as some of the ginners were not inclined to hold long position amid falling mill demand.

“Both the ginners and the spinners appear to be the victim of unsold stocks,” brokers said and added while the former are holding an unsold stock of over 2 million bales, the latter claim inventories of unsold cotton yarn are rising each day in the absence of strong foreign demand.

While the ginners are awaiting the entry of the TCP to bail them out from the prevailing crisis of production glut, the spinners are out to convince their traditional partners to resume annual buying, they added.

Floor brokers said the market might continue to rule sluggish until export of finished goods picks up and spinners resume normal covering operations.

But spinners say in addition to falling foreign demand for the cotton yarn, the other negative factor is the lower prices being offered by the foreign buyers apparently in line with the local lint prices.

Although spinners and mills still need about 2 million bales to see the current financial year ending Aug 31, to see through, pressure on their liquidity owing to slow export has limited their covering purchases, they added.

“Prices could further ease from the current level if mill demand remains shy during the coming weeks also, but there is no possibility of a price crash owing to the presence of the TCP,” they say.

Exporters have resumed their covering operations on a modest scale but their purchases are too small to give the market needed psychological push, some dealers say. However, reports that an exporter has purchased 400 bales of fine type from the upper Sindh ginnery reflects that foreign demand for the medium staple variety is also picking up.

At the weekend session, late on Saturday evening, a business of about 12,000 bales was reported, the following being some the notable deals:

SINDH TYPE: 3,000 bales from Gothki, Dharki and Mirpur Mathelo sold at Rs1,725 to Rs1,750, 400 bales, Dharki was purchased by an exporter at Rs1,750 and 1,000 bales of Qazi Ahmed at Rs1,650.